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Financial Management Quiz 108 (20 MCQs)

Quiz Instructions

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1. The tool used by companies to assess the company's financial performance based on comparative data for each item in the financial report is called:
2. A financial manager must choose between four alternative Assets 1, 2, 3, and 4. Each asset costs $ 35, 000 and is expected to provide earnings over a 3-year period as described below:Asset 1:Year 1-$ 21, 000 ; Year 2-$ 15, 000 ; Year 3-$ 6, 000 Asset 2:Year 1-$ 9, 000 ; Year 2-$ 15, 000 ; Year 3-$ 21, 000Asset 3:Year 1-$ 3, 000 ; Year 2-$ 20, 000 ; Year 3-$ 19, 000Asset 4:Year 1-$ 6, 000 ; Year 2-$ 12, 000 ; Year 3-$ 12, 000Which asset would the financial manager choose?
3. What is a potential consequence of poor financial management for a business?
4. One example of cash disbursement from financing activities is
5. Occurs when a business sells its stocks or bonds directly to savers, without going through any type of financial institution.
6. Selected information from the accounting records of R Company is as follows:Net sales for 2020-P800, 000Cost of goods sold for 2020-500, 000Inventory, December 31, 2019-200, 000Inventory, December 31, 2020-156, 000P's inventory turnover for 2020 is
7. In the grocery store, the food displays at the end of the aisle are the best buys.
8. Companies (A) and (B) have the same tax rate, sales, total assets, and basic earning power. Both companies have positive net incomes. Company (A) has a higher debt ratio and, therefore, a higher interest expense. Which of the following statements is CORRECT?
9. The objectives or goals of financial management are to maximize ..... ?
10. Q5) Which principle of sound financial planning relates to spreading investments across different asset types?
11. Financial leverage is also called as .....
12. Which one of the following items is not a method/tool of analysis of financial statements?
13. Refers to the fungible and tradable financial instrument used to raise capital in public and private markets.
14. Increasing the credit period from 30 to 60 days, would likely result in:
15. True/False:Current Ratio = (Current Assets-Inventory)/Current Liabilities
16. How many percentages should a person save from their monthly income?
17. The primary function of financial markets is to provide investment advice to individual investors.
18. These are sanctioned for a period up to 1 year
19. An organisation wanting to have more liquid assets would .....
20. According to financial experts, what portion of your income should be devoted to savings?
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